Oil suffers biggest weekly loss in 2023
Biggest weekly loss in 2023
Price drop amid many concerns
After the price began to rise, the company’s prices fell more than 1 percent on Friday, heading toward the worst weekly performance so far this year.
The decline in black gold prices was caused by investor fears of negative developments in the banking sector, despite the meeting between Saudi Arabia and Russia, and the subsequent calm in energy markets, as well as expectations of strong demand for gold in China.
A banking crisis sparked heavy selling in global financial and financial markets this week.
At 1353 GMT, Brent crude futures were down 1.74 percent at $73.4 a barrel.
Brent is heading for a weekly loss of around 11.3 percent
US West Texas crude fell 1.65 percent to $67.33 a barrel, trending for weekly losses of more than 12 percent.
Both contracts this week hit their lowest levels in more than a year.
And other global assets declined this week, as the collapse of “Silicon Valley” and “Signature” banks prompted the US and Swiss governments to seek to support banks’ liquidity.
JPMorgan analysts said in a note: “LBP demand is being reassessed, but we don’t expect much change in fundamentals and tend to ride out volatility in the financial sector, keeping our price outlook unchanged for now as we wait for a update on political actions.” Possible in the coming weeks”, referring to a meeting of the OPEC+ group and the possible measure by Washington to recharge strategic reserves.
The OPEC+ Advisory Committee, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, meets on April 3.
US West Texas Intermediate crude fell below $70 a barrel for the first time since December 2021, which could make prices attractive enough for the US government to start refilling the Strategic Petroleum Reserve, which has reached historical minimum levels.
Analyst expectations for a demand recovery in China supported higher oil prices at the end of the week, while US crude exports to China in March headed for their highest level in almost two and a half years.
Analyst Tina Ting of “CMC Markets” said that the recovery of demand in China will be positive for the country’s prices if the next data shows a good recovery of the country’s economy.
“China’s road traffic and air travel are growing strongly, while advanced economies show signs of improvement,” ANZ analysts said in a note to clients.
However, the risks of the spread of the crisis among banks continue to worry investors, limiting their appetite for assets such as raw materials for fear that a new turbulence could lead to a global recession and a fall in the demand for money. .
“The recent banking turmoil may continue to affect the demand outlook,” Ting said.